Ryanair has reported a 13pc rise in full-year profits, despite rising fuel
costs, but warned that it expected a slowdown in the coming year due to
demand weakness in Europe.

The low cost carrier unveiled record annual results with revenues and post-tax profits up 13pc each, "despite higher oil costs." Revenues to the end of March jumped to €4.9bn from €4.3bn last year, while post-tax profits rose to €569m, even though fuel costs rose by more than €290m and now accounts for 45pc of costs.

Passenger traffic grew 5pc to 79.3 million fuelled by 217 new routes, bringing the total to 1,600

But the company warned that profits for the coming financial year could come in flat at €570m, or at most €600m, an increase of 5pc.

"We expect modest yield (revenue per passenger mile) and traffic growth for the full year to be partly offset by higher oil and Eurocontrol costs," Chief Executive Michael O'Leary said in a statement, referring to the pan-European air traffic control body.

"With almost zero yield visibility into (the second half) and the EU wide recession, we expect that there will continue to be downward pressure on yields which will dampen full-year profit growth," O'Leary said.

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Ryanair, which will not begin to receive any of the 175 Boeing jets it ordered in March until the following year, said it expects passenger numbers to grow 3pc in coming year, compared with growth of 5pc in 12 months to March.

He said bookings on new routes and bases in the coming summer were ahead of expectations, but warned that average fares were modest.

In February, the European competition authorities blocked Ryanair's latest attempt to take over its Irish rival Aer Lingus. The European Commission said the €694m (£600m) proposed deal would have "harmed consumers by creating a monopoly or a dominant position on 46 routes where, currently, Aer Lingus and Ryanair compete vigorously against each other".

In today's results, Mr O'Leary said he was "disappointed" by the Commission's "bizarre" decision to block Ryanair's third offer for Aer Lingus.

"We have no doubt that this was yet another politically motivated decision by Europe's competition authority and it is inexplicable in the context of its stated policy of promoting European airline consolidation," he said.

He also attacked UK authorities for their "even more bizarre regulatory inquiry". He called for the Competition Commission's "spurious and time wasting" inquiry into Ryanair's minority stake in Aer Lingus, which it has held for six-and-a-half years, to be "abandoned".

Shares in the airline were up 5.8pc in early trading on Monday morning.